5 Hacks to Manage Multiple Credit Cards

Multiple Credit Cards

Owning multiple credit cards is an excellent strategy to boost your overall credit limit. But you need to learn to use them smartly so that your monthly credit bills don’t pile up. While different credit cards can be allocated and used for different purposes for the sake of convenience, you may find it difficult to keep track of the associated terms and conditions and due payment dates. 

You need to learn to manage all of them in such a way that you can avail of the exclusive benefits offered by each one of them. Here are some tips to manage your multiple credit cards efficiently.

Ensure that Different Cards Offer You Different Benefits

The basic argument for applying for multiple credit cards is to have an enhanced credit limit besides getting access to special benefits offered by each of them. You may need a regular credit card with attractive offers on all your spending, but you may also need a credit card with lounge access as you are a frequent traveller. 

Similarly, you may also need a card which offers you discounts on your flight and hotel bookings. For this, you need to look at various travel credit cards, compare them and choose the one which offers the maximum benefits.

Automate the Bill Payments of Your Credit Cards

One way to ensure that you do not forget to make the bill payment of any of your credit cards is to set up an automatic payments system. This ensures that your credit card bill is paid from your bank account directly every month. 

Timely payment will help you avoid interest charges and penalty fees besides boosting your credit score. And if you are not automating remember to pay off the bill of the card with the highest interest rate first.

Apply for Cards with Different Billing Cycles

An excellent way to benefit from multiple credit cards is to choose cards with different billing cycles and interest rates. You can allocate each card for a different purpose so that you can manage the repayment or the credit card bill dues efficiently. 

Compare Credit Card Costs

The interest charges and other fees related to using a credit card may differ from one card to another. Try to choose cards that minimise your total cost while offering you the maximum benefits in terms of discounts, special offers, and reward points. Also, regular comparison can help you decide which card’s benefits outweigh the associated costs.

Avoid Outstanding Balances on Any Card

Outstanding balances are charged high-interest rates. You can avoid having outstanding balances on any of your cards by using the different cards according to their benefits and billing cycles. This will help you avoid excessive billing on any one card.

Managing multiple credit cards is not easy but can be done by some planning and research before applying for them. Choosing credit cards with no annual fee or benefits like lounge access can be a good way to keep your card-related costs in check. Also, plan your expenses in such a way that timely payment of all the bills is possible. And last, but very important is the regular checking of all your credit card statements to detect any errors or frauds that can occur.